Landlord confidence plummets amid legislation and soaring EPC upgrade costs

Landlord confidence plummets amid legislation and soaring EPC upgrade costs

9:03 AM, 12th December 2024, About 8 hours ago 3

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Landlord confidence has dropped due to looming legislation and upcoming energy-efficiency changes.

Research by Savills reveals that 73% of landlords have felt less confident in the past year, driven by concerns over the Renters’ Rights Bill and the potential abolition of Section 21.

Landlords are also worried about bearing the burden of energy-efficiency upgrades to their properties, which could cost them thousands of pounds.

Concerns over the Renters’ Rights Bill and Autumn Budget

According to Savills, more than 82% of landlords’ confidence has plummeted due to the Renters’ Rights Bill, with 69% citing the Autumn Budget as a contributing factor.

Chancellor Rachel Reeves announced that landlords would face a stamp duty surcharge increase from 3% to 5% on additional homes.

Analysis by Capital Economics reveals that raising stamp duty on rental properties from 3% to 5% could result in a net loss of half a million rental homes over the next ten years.

More than half of landlords (57%) say they have ‘significant concern’ about the increase in notice periods to recover possessions in the Renters’ Rights Bill.

The Bill will require landlords to give tenants four months’ notice to regain possession. However, if the landlord or a family member wishes to move in, possession cannot be sought during the first year of a new tenancy.

According to the research by Savills, 50% of landlords have ‘significant concern’ about the abolition of Section 21 and 31% with rent review procedures in the Renters’ Right Bill.

EPC concerns

The survey also reveals that 41% of landlords have significant concerns over energy-efficiency changes. Ed Miliband has announced all private rented properties must meet an EPC C target by 2030.

According to the survey, 40% of landlords would spend up to £2,000 improving a property’s EPC rating.

However, landlords could face having to pay double that, with research by epIMS showing that upgrades could cost as much as £8,000.

The Savills survey reveals only 12% of landlords are willing to spend more than £5,000 to improve a property.


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PH

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12:25 PM, 12th December 2024, About 5 hours ago

I'm prepared to pay absolutely nothing on my 69 C until it becomes compulsory for every single property in the country to come under the same EPC rules. I know I don't have to spend anything as it's already a C but my point is why stop at landlords ? The difference upgrading will make to net zero is 0% and a couple of pounds cheaper for the tenant. Let's have this EPC ruling across the country and then we might all feel a tad better about it

Cider Drinker

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13:33 PM, 12th December 2024, About 3 hours ago

“The difference upgrading will make to net zero is 0%…”.

You are missing the point.

The U.K. has a finite supply of gas and electricity that it can supply through the gas and electricity grids.

Starmer thinks that he needs to build 1.5 million new homes to accommodate the migrants. These new homes will use a lot of energy, both in construction and in use.

We need to trim energy use in existing homes to free up capacity for the new homes.

The government needs us all to use less energy so that the new homes for migrants can be supplied with energy, without investing in upgrades to the grids.

How much it costs to save a few kWh is irrelevant (to Starmer and co) if it isn’t the Treasury's money that is being used.

PH

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16:19 PM, 12th December 2024, About 40 minutes ago

Doesn't the fact that those LL with EPC of below C having to spend k's on their property to reduce energy consumption count towards net zero ? Answer = not really although Milliband would disagree .It is making the houses more energy efficient but by a miniscule amount and the cost saving for the tenant will be peanuts in comparison. As I said in another post if Milliband told every home owner in the country to comply with EPC C or better by 2030 I would have more respect for his reasoning but applying his beliefs to a tiny percentage of the country is just plain non-sensical. Just another excuse to pick on the small defenceless LL. Hopefully they'll be out by 2029 and Reform will stop all this nonsense.

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